Kenya has ended the ban on the export of molasses even as the local distillers continue to pay a steep price for the raw material used to make alcohol citing shortage.
Export of molasses, critical for making spirits, had been on ice since February last year after much of it was diverted to the neighbouring market leaving local distillers without the input used to prepare ethanol.
But in a letter to all sugar millers, the acting director of the Sugar Directorate Jude Chesire announced the lifting of the suspension, noting that the decision was informed by the completion of a verification exercise which established that millers are currently holding excess molasses.
“In compliance with the presidential pronouncement, the suspension of molasses is hereby lifted,” Mr Chesire said in a letter dated February 5, 2024. “This is, therefore, to inform you of the resumption of molasses exports for a period of 45 days effective from 6th February 2024. The authority is subject to review.”
In the letter, which was copied to the Kenya Revenue Authority, the National Police Service and Kenya Trade Network Agency (Kentrade) Mr Chesire said priority should be given to local distillers and farmers for local use.
About 80 percent of the locally produced molasses, a by-product in the production of sugar, is to be sold to distillers. Farmers received 10 percent while the rest was exported.
The news was not received well by local distillers who say they are still reeling from a shortage of molasses as a result of increased illegal exports.
“The lifting of the ban is in bad taste and will certainly affect our production. The supply of molasses has not improved and we are still paying a high price for it,” said Mohan Galot, the chairman of London Distillers, one of the three local distillers.
Other distillers include Agro-Chemical and Food Company Limited (ACFC), which has been forced to suspend operations due to the limited supply of molasses. The other player is the Kisumu-based sugar miller Kibos.
